Toast the dried chili peppers in a dry frying pan over medium heat for about 5 minutes, or until they begin to turn brown. Toasting the peppers removes any residual moisture and brings out their flavor. You can also put the chili peppers on a baking sheet, then toast them in a 325-degree oven for about 8 minutes. Remove the chili peppers from the pan and let them cool down. Remove the stems and seeds from the peppers, then tear them into small pieces.

Step 1

Make chili powder using a pepper mill or dry food grinder. This method allows you to make freshly-ground chili powder as needed. Tear or cut the chili pepper into the smallest possible pieces, then fill the empty pepper grinder with the chilies. Whenever you need chili powder, just grind out the amount you need as you would pepper.

Step 2

Grind the chili peppers by hand using a mortar and pestle. This method produces the best flavor, but is by far the most laborious and time-consuming. Place the torn-up chili peppers into the mortar, or bowl, then grind them against the side and bottom of the bowl by turning the pestle in a circular motion. Continue grinding until the chili peppers turn into a coarse powder.